Kalyani Sikccha Samiti, Agra V. C.I.T.-II, Agra

ITA 441/AGR/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0532 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 7 month(s) 18 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-01-2013
• Assessment Year: 2012-2013
• Appeal Filed On: 28-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO.441/AGR/2012 ASSESSMENT YEAR: 2012-13 KALYANI SIKCCHA SAMITI, VS. COMMISSIONER OF INCO ME TAX-II, 22, NUTAN NAGAR, AGRA. DAYALBAGH, AGRA. (PAN: AABTK 5375 R) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DEEPENDRA MOHAN, C.A. RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R . DATE OF HEARING : 17.01.2013 DATE OF PRONOUNCEMENT OF ORDER : 29.01.2013 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 26.07.2012 PASSED BY THE LD. CIT-II, AGRA UNDER SECTION 12AA O F THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER). 2. THE ORIGINAL EFFECTIVE GROUND RAISED BY THE ASSE SSEE IS IN RESPECT OF REJECTION OF APPLICATION FOR GRANT OF REGISTRATION UNDER SECT ION 12AA OF THE ACT. ITA NO.441/AGR/2012 A.Y. 2012-13 2 3. THE ASSESSEE HAS ALSO FILED APPLICATION FOR MODI FICATION IN GROUND OF APPEAL WHICH READS AS UNDER :- THAT THE ORDER PASSED UNDER SECTION 12AA OF THE I NCOME-TAX ACT, 1961 BY THE HONBLE CIT IS WRONG, UNJUST AND I LLEGAL AS NO HEARING OF THE APPELLANT OR ANY PROCEEDING OF THE M ATTER WAS CONDUCTED BY THE HONBLE CIT HIMSELF. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E SAMITI FURNISHED APPLICATION IN FORM NO.10A DATED 12.01.2012. IT HAS BEEN NOTIC ED FROM THE ORDER OF CIT THAT AS PER THE MEMORANDUM OF ASSOCIATION THE ASSESSEE S OCIETY HAS BEEN SET UP WITH THE OBJECTS, INTER ALIA, OF PROPAGATING AND IMPARTI NG EDUCATION AT VARIOUS LEVELS AND IN VARIOUS STREAMS, AND WORKING FOR THE OVERALL DEV ELOPMENT OF VARIOUS SECTIONS OF SOCIETY, INCLUDING WOMEN, CHILDREN, HANDICAPPED, ET C. FROM THE AUDITORS REPORT THE CIT NOTICED THAT THE ASSESSEE DID NOT SHOW ANY EXPENDITURE PERTAINING TO CHARITABLE PURPOSES IN F.YS. 2009-10, 2010-11 & 201 1-12. THE ASSESSEE HAS INCURRED EXPENSES ON PURCHASE OF PLOT OF LAND AND B UILDING CONSTRUCTION IN F.YS. 2009-10 & 2011-12. THE CIT NOTED THAT NO CHARITABL E PURPOSE IS INHERENT IN THESE ACTIVITIES/EXPENSES AS SUCH. THE DETAILS FILED BY THE ASSESSEE BEFORE THE CIT IN THE FORM OF PHOTOGRAPHS, STAFF ATTENDANCE AND OTHERS WE RE NOT ACCEPTED BY THE CIT. THE CIT HELD THAT THE ASSESSEE DID NOT CARRY OUT AN Y CHARITABLE ACTIVITIES IN ACCORDANCE WITH ITS DECLARED OBJECTS. THE CIT DID NOT SATISFY ABOUT THE OBJECTS AND GENUINENESS OF THE ACTIVITIES. ITA NO.441/AGR/2012 A.Y. 2012-13 3 5. LD AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ENTIRE PROCEEDINGS HAVE BEEN CONDUCTED BY THE ITO (TECHNICAL) INSTEAD OF CI T. LD AUTHORISED REPRESENTATIVE DREW OUR ATTENTION TO PAGE NOS.1 & 2 OF PAPER BOOK WHERE COPY OF ORDER SHEET HAS BEEN PLACED. LD AUTHORISED REPRES ENTATIVE SUBMITTED THAT THE DRAFT ORDER WAS PUT UP BEFORE THE ITO (TECHNICAL) A ND NOT BEFORE THE CIT AS IS EVIDENT FROM THE ORDER SHEET DATED 26.07.2012. LD AUTHORISED REPRESENTATIVE SUBMITTED THAT SINCE THE CIT DID NOT APPLY HIS MIND , THEREFORE, THE ASSESSEE IS ENTITLED FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. LD AUTHORISED REPRESENTATIVE IN SUPPORT OF HIS CONTENTION RELIED UPON THE FOLLOWING DECISIONS OF I.T.A.T., AGRA BENCH :- I) SMT. BIMLA DEVI GOPAL PRASAD PRESS WALE CHARITAB LE TRUST VS. CIT-I IN ITA NOS.288 & 289/AGR/2012. II) LORD KRISHNA EDUCATION FOUNDATION SOCIETY VS. C IT-I IN ITA NO.287/AGR/2012. III) RAJPUTANA EDUCATIONAL SOCIETY VS. CIT IN ITA N OS.469 & 470/AGR/2011. IV). SHIKSHA SANKALP SOCIETY VS. CIT IN ITA NO.418/ AGRA/2010. 6. LD AUTHORISED REPRESENTATIVE FURTHER SUBMITTED T HAT THE COUNSEL APPEARING BEFORE THE CIT HAS ALSO FILED AFFIDAVIT, COPY OF WH ICH IS PLACED AT PAGE NO.3 OF PAPER BOOK. IT IS ALSO SUBMISSION OF THE LD AUTHOR ISED REPRESENTATIVE THAT THE ITA NO.441/AGR/2012 A.Y. 2012-13 4 ASSESSEE FURNISHED THE RELEVANT PHOTOGRAPHS, DETAIL S OF ATTENDANCE OF STAFF ETC. THE ASSESSEE HAS ALSO PAID FEES FOR RECOGNITION OF SCHO OL. IN THIS REGARD COPY OF CHALLAN HAS BEEN FILED AT PAGE NO.38 OF THE PAPER B OOK. 7. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDER OF CIT. 8. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND RECORDS PERUSED. WE NOTICE THAT THE ASSESSEE HAS FURNISHED CERTAIN D ETAILS IN THE FORM OF PHOTOGRAPHS, STAFF ATTENDANCE AND OTHERS BEFORE THE CIT. THE CIT WITHOUT EXAMINING THOSE MATERIALS REACHED TO THE CONCLUSION . IN FACT, IT APPEARS FROM THE COPIES OF THE ORDER SHEET THAT THE DRAFT ORDER HAS BEEN PUT UP BEFORE THE ITO (TECH) AND CIT DID NOT APPLY HIS MIND WHICH IS CONT RARY TO LAW. THE ASSESSEE HAS ALSO FAILED TO FURNISH ALL THE RELEVANT PAPERS BEFO RE THE CIT TO ESTABLISH THAT THE ASSESSES SOCIETY HAS STARTED ITS ACTIVITIES. THE CONTENTION RAISED BY THE COUNSEL APPEARED BEFORE THE CIT IS ALSO SUBJECT TO VERIFICA TION. AFTER CONSIDERING TOTALITY OF THE FATS OF THE CASE, WE THINK IT PROPER TO SEND BACK THE MATTER TO THE FILE OF CIT TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW A FTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. ITA NO.441/AGR/2012 A.Y. 2012-13 5 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY